CBSE

SOLVED PAPER

ACCOUNTANCY

For

MARCH

2019Strictly based on

the latest CBSE curriculumthissued on 15 March, 2018

for Academic Year 2018-19

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2018

CLASS 12

After going through this unit, the student will be able to:l state the meaning of a Not-for-profit organisation

and its distinction from a profit making entity.l state the meaning of receipts and payments

account, and understanding its features.l develop the understanding and skill of preparing

receipts and payments account.l state the meaning of income and expenditure

account and understand its features.l develop the understanding and skill of preparing

income and expenditure account and balance sheet of a not-for-profit organisation with the help of given receipts and payments account and additional information.

Latest Syllabus for Academic Year 2018-19Accountancy Class-12 (Code No. 055)

One Paper Theory: 80 Marks

3 Hours

Units Periods MarksPart A Accounting for Not-for-Profit Organizations, Partnership Firms and Companies Unit 1. Financial Statements of Not-for-Profit Organizations 25 10 Unit 2. Accounting for Partnership Firms 90 35 Unit 3. Accounting for Companies 35 15 150 60

Part B Financial Statement Analysis Unit 3. Analysis of Financial Statements 30 12 Unit 4. Cash Flow Statement 20 8 50 20Part C Project Work 40 20

Project work will include: Project File 4 Marks Written Test 12 Marks (One Hour) Viva Voce 4 Marks ORPart B Computerized Accounting

Unit 3. Computerized Accounting 50 20Part C Practical Work 26 20 Practical work will include: Practical File 4 Marks Practical Examination 12 Marks (One Hour) Viva Voce 4 Marks

Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies 60 Marks 150 Periods

Unit 1: Financial Statements of Not-for-Profit Organizations 25 Periods

Units/Topics Learning Outcomes

l Not-for-profit organizations: concept.l Receipts and Payments Account: features and

preparation.l Income and Expenditure Account: features,

preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Scope:(i) Adjustments in a question should not exceed 3 or 4 in

number and restricted to subscriptions, consum-ption of consumables and sale of assets/ old material.

(ii) Entrance/admission fees and general donations are to be treated as revenue receipts.

(iii) Trading Account of incidental activities is not to be prepared.

( 2 )

After going through this unit, the student will be able to:

l state the meaning of partnership, partnership firm and partnership deed.

l describe the characteristic features of partnership and the contents of partnership deed.

Unit 2 : Accounting for Partnership Firms 90 Periods

Units/Topics Learning Outcomes

l Partnership: features, Partnership Deed.l Provisions of the Indian Partnership Act 1932 in

the absence of partnership deed. l Fixed v/s fluctuating capital accounts. Prepara-

tion of Profit and Loss Appropriation account- division of profit among partners, guarantee of profits.

l discuse the significance of provision of Partnership Act in the absence of partnership deed.

l differentiate between fixed and fluctuating capital, outline the process and develop the understanding and skill of preparation of Profit and Loss Appropriation Account.

l develop the understanding and skill of prepration profit and loss appropriation account involving guarantee of profits.

l develop the understanding and skill of making past adjustments.

l state the meaning, nature and factors affecting goodwill

l develop the understanding and skill of valuation of goodwill using different methods.

l state the meaning of sacrificing ratio, gaining ratio and the change in profit sharing ratio among existing partners.

l develop the understanding of accounting treatment of revaluation assets and reassessment of liabilities and treatment of reserves and accumulated profits by preparing revaluation account and balance sheet.

l explain the effect of change in profit sharing ratio on admission of a new partner.

l develop the understanding and skill of treat- ment of goodwill as per AS-26, treatment of revaluation of assets and re-assessment of liabilities, treatment of reserves and accum- ulated profits, adjustment of capital accounts and preparation of balance sheet of the new firm.

l explain the effect of retirement/death of a partner on change in profit sharing ratio.

l develop the understanding of accounting treatment of goodwill, revaluation of assets and re-assessment of liabilities and adjustment of accumulated profits and reserves on retirement / death of a partner and capital adjustment.

l develop the skill of calculation of deceased partner's share till the time of his death and prepare deceased partner's executor's account.

l discuss the preparation of the capital accounts of the remaining partners and the balance sheet of the firm after retirement / death of a partner.

l understand the situations under which a partnership firm can be dissolved.

l develop the understanding of preparation of realisation account and other related accounts.

l�Past adjustments (relating to interest on capital, interest on drawing, salary and profit sharing ratio).

l Goodwill: nature, factors affecting and methods of valuation - average profit, super profit and capitalization.

Note : Interest on partner's loan is to be treated as a charge against profits.Accounting for Partnership firms - Reconstitution and Dissolution.l Change in the Profit Sharing Ratio among the

existing partners - sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits. Preparation of revaluation account and balance sheet.

lAdmission of a partner - effect of admission of a partner on change in the profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves, and accum-ulated profits, adjustment of capital accounts and preparation of balance sheet.

l Retirement and death of a partner: effect of retirement / death of a partner on change in profit sharing ratio, treatment of goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, adjustment ofaccumulated profits and reserves, adjustment ofcapital accounts and preparation of balance sheet. Preparation of loan account of the retiring partner. Calculation of deceased partner's share of profit till the date of death. Preparation of deceased partner's capital account, executor's account.

l Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts - preparation of realization account, and other related accounts: capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Note : (i) The realized value of each asset must be given at the time of dissolution.(ii) In case, the realization expenses are borne by a partner, clear indication should be given regarding the payment there of.

( 3 )

After going through this unit, the students will beable to :l state the meaning of share and share capital and

differentiate between equity shares andprefer-ence shares and different types of share capital.

l understand the meaning of private placement of shares and Employee Stock Option Plan.

l explain the accounting treatment of share capital transactions regarding issue of shares

Unit 3 : Accounting for Companies 60 Periods

Units/Topics Learning Outcomes

Accounting for Share Capitall Share and share capital: nature and types.l Accounting for share capital: issue and allotment of equity shares, private placement of shares, Employee Stock Option Plan (ESOP). Public subscription of shares - over subscription and under subscription of shares; issue at par and at premium, calls in advance and arrears (excluding interest), issue of shares for consideration other than cash.

( 4 )

.ldevelop the understanding of accounting treat-ment of forfeiture and re-issue of forfeited shares.

l describe the presentation of share capital in the balance sheet of the company as per schedule III part I of the Companies Act 2013.

l explain the accounting treatment of differentcategories of transactions related to issue ofdebentures.

l develop the understanding and skill of writing of discount/loss on issue of debentures.

l understand the concept of collateral security and its presentation in balance sheet.

l develop the skill of calculating interest on debentures and its accounting treatment.

l state the meaning of redemption of debentures.

l develop the understanding of accountingtreatment of transactions related to redemption of debentures by lump sum, draw of lots, purchase in open market and conversion method.

l Concept of Private Placement and Employee stock Option Plan (ESOP).

l Accounting treatment of forfeiture and re-issue of shares.

l Disclosure of share capital in company's Balance Sheet of a company.

Accounting for Debentures

l Debentures: Issue of debentures at par, at a premium and at a discount. Issue of debentures for consideration other than cash; Issue of debentures with terms of redemption; debentures as collateral security-concept, interest on debentures. Writing off discount /loss on issue of debentures.

l Redemption of debentures Methods: Lump sum, draw of lots. Creation of Debenture Redemption Reserve.

Note: Related sections of the Companies Act, 2013 will apply.

After going through this unit, the students will be able to:l develop the understanding of major headings

and sub-headings (as per Schedule III to the Companies Act, 2013) of balance sheet as per the prescribed norms / formats.

l state the meaning, objectives and limitations of financial statement analysis.

l discuss the meaning of different tools of'financial statements analysis'.

l develop the understanding and skill of prepar- ation of comparative and common size financial statements.

l state the meaning, objectives and significance of different types of ratios.

l develop the understanding of computation of current ratio and quick ratio.

l develop the skill of computation of debt equity ratio, total asset to debt ratio, proprietary ratio and interest coverage ratio.

l develop the skill of computation of inventory turnover ratio, trade receivables and trade pay- ables ratio and working capital turnover ratio.

l develop the skill of computation of gross profit ratio, operating ratio, operating profit ratio, net profit ratio and return on investment.

Part B : Financial Statement Analysis 20 MarksUnit 4 : Analysis of Financial Statements 30 Periods

l Financial statements of a company : Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and sub headings (as per Schedule III to the Companies Act, 2013).

Note : Exceptional items, extraordinary items and profit (loss) from discontinued operations are excluded.l Financial Statement Analysis : Objectives,

importance and limitations.l Tools for Financial Statement Analysis : Comp-

arative statements, common size statements, cash flow analysis, ratio analysis.

l Accounting Ratios : Objectives, classification and computation.

Liquidity Ratios : Current ratio and Quick ratio.Solvency Ratios : Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.Activity Ratios : Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Working Capital Turnover Ratio.Profitability Ratios : Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

After going through this unit, the students will be able to:l state the meaning and objectives of cash flow

statement.l develop the understanding of preparation of

Cash Flow Statement using indirect method as per AS 3 with given adjustments.

Note : Net Profit Ratio is to be calculated on the basis profit before and after tax.

Unit 5 : Cash Flow Statements 20 Periods

l Meaning, objectives and preparation (as per AS 3 (Revised) (Indirect Method only)

Note :(i) adjustments relating to depreciation and

amortization, profit or loss on sale of assets including investments, dividend (both final and interim) and tax.

(ii) Bank overdraft and cash credit to be treated as short term borrowings.

(iii) Current Investments to be taken as Marketable securities unless otherwise specified.

Part A : Project Work 20 Marks 40 PeriodsNote : Kindly refer to the Guidelines published by the CBSE.

ORPart B : Computerised Accounting 20 Marks 50 PeriodsUnit 3 : Computerised Accounting

( 5 )

Scheme of options: All questions carrying 8 marks will have an internal choice.

Note : The Board has introduced Learning Outcomes in the syllabus to motivate students to constantly explore all levels of learning. However these are only indicative. These do not in any way restrict the scope of questions asked in the examinations. The examination questions will be strictly based on the prescribed question paper design and syllabus.

1. Remembering - (Knowledge based Simple recall questions, to know specific facts, terms, concepts, principles, or theories; Identify, define, or recite, information)

3 1 1 1 - 16 20%

- –2. Understanding (Comprehension to be familiar with meaning and to understand conceptually, interpret, compare, contrast, explain, paraphrase, or interpret information)

2 - 2 1 1 24 30%

3. Application (Use abstract information in concrete situation, to apply knowledge to new situations; Use given content to interpret a situation, provide an example, or solve a problem)

- 2 2 1 - 20 25%

(4. High Order Thinking Skills- Analysis & Synthesis - Classify, compare, contrast, or differentiate between different pieces of information; Organize and/or integrate unique pieces of information)

2 - - 1 1 16 20%

5. Evaluation- (A ppraise, judge, and/or - justify the value or worth of a decision or outcome, or to predict outcomes based on values)

1 1 - - - 04 05%

TOTAL

8x1=8 4x3=12 5x4=20 4x6=24 2x8=16

80(23)

+20 Projects

100%

S. No.

Typology of Questions Very Short

Answer

Short

Answer I

3 Marks

Short

Answer II

4 Marks

Long Answer I

6 Marks

Long Answer

II

8 Marks

Marks

%

1 Mark

Suggested Question Paper Design (2018-19)

Accountancy (Code No. 055)

Class XIIOne Paper Theory : 80 Marks

Duration : 3